Saipem cuts 2026 forecast, signals Middle East hit for energy contractors

MILAN, July 28 (Reuters) - Saipem SPMI.MI cut its 2026 core earnings forecast on Tuesday, sending shares in the Italian oilfield services group down more than 8% as disruption linked to the Gulf conflict drove up costs and created logistical challenges.

The Milan-based group now expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of €1.75 billion ($1.99 billion) this year, down from a previous forecast of €1.9 billion.

Oilfield service companies had been seen as potential beneficiaries of the conflict between the United States and Iran, with damage to energy infrastructure expected to spur demand for repairs and reconstruction work.

Instead, Saipem and U.S. rival Baker Hughes BKR.O warned this week that the conflict was weighing on operations, as energy companies delayed some projects and service providers faced higher costs and disruption.